Stocks fell Wednesday, weighed down by a selloff in Asia and retreats across Europe and New York overnight.
The Philippine Stock Exchange Index slipped 15.38 points, or 0.2 percent, to 8,129.62 on a value turnover of P6.6 billion. Losers edged gainers, 95 to 90, with 59 issues unchanged.
SM Prime Holdings Inc. of retail tycoon Henry Sy dropped 2.5 percent to P35.60, while Globe Telecom Inc., the second-biggest telecommunications company, declined 2.2 percent to P1,760.
Manila Electric Co., the largest retailer of electricity, rose 2 percent to P308, while PLDT Inc., the biggest telecom firm, climbed 2.8 percent to P1,491.
Technology and energy firms, meanwhile, were the biggest losers in Asia as Hong Kong and Tokyo led an Asian market plunge on Wednesday.
A global equity rally has hit the buffers this week as the US probe into Russia’s alleged election meddling sows uncertainty, Britain struggles to reach a Brexit deal with the European Union and traders remain cautious about Washington’s ability to push through tax cuts.
A key drag for Asia on Wednesday was copper prices which sank more than four percent in London, having already lost about 10 percent over the previous week. Analysts blamed a pick-up in the dollar on hopes for US tax cuts.
The losses hit wider markets. Tokyo ended two percent down.
“The adjustment mode is deepening lately in the Japanese stock market,” said Shunichi Otsuka, general manager in the research department at Ichiyoshi Securities in Tokyo. “It’s difficult to buy unless US equities show firmness, even as some high-tech shares are becoming cheap.”
Hong Kong lost 2.1 percent, leaving it more than six percent off its decade peak touched just over a fortnight ago.
Shanghai closed 0.3 percent down and Sydney was 0.4 percent lower following weaker-than-forecast economic growth data, which also dragged down the Australian dollar on expectations the country’s central bank will not raise interest rates any time soon.
Seoul gave up 1.4 percent, while Taipei shed 1.6 percent and Wellington dropped 0.6 percent.
There are also worries about China’s crackdown on borrowing-fueled investing.
“The sentiment in China has turned less positive after the conclusion of the national party congress, as the deleveraging rhetoric has returned to the market, especially with regards to real estate speculation,” TD Securities commodity strategist Ryan McKay told Bloomberg News.
“Worries of the deleveraging’s impact on real estate and construction demand saw optimism for commodity demand reduced and prices retreat.”
Oil prices were hit by data showing a big rise in US inventories.
Sydney-listed miner Rio Tinto shed 2.5 percent and BHP was two percent off, while energy giant Woodside Petroleum lost 0.3 percent. CNOOC, Sinopec and PetroChina dived in Hong Kong while Inpex was hammered more than three percent in Tokyo.
Greg McKenna, chief market strategist at AxiTrader, said since the US tax cuts look set to be agreed, the fall in prices could be caused by a so-called “buying the rumor, sell the (almost) fact”, mixed with profit-taking following a healthy run-up this year. With AFP
